NovaCopper Announces Second Quarter Financial Results

TSX, NYSE-MKT Symbol: NCQ

VANCOUVER, July 9, 2014 /CNW/ - NovaCopper Inc. (TSX, NYSE-MKT: NCQ) ("NovaCopper" or "the Company") announces its
financial results for the second quarter ended May 31, 2014. Details
of the Company's financial results are contained in the unaudited
consolidated financial statements and Management's Discussion and
Analysis which will be available on the Company's website at www.novacopper.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All amounts are in United States dollars unless otherwise stated.

Recent Activities

On July 7, 2014, we completed the financing originally announced on July
1, 2014 where we had entered into definitive agreements with existing
shareholders to complete a non-brokered private placement offering of
$7.5 million in Units. Each Unit was priced at $1.15 per Unit and
consisted of one common share of the Company and one common share
purchase warrant. Each common share purchase warrant will entitle the
holder to purchase one common share of the Company at a price of $1.60
per share for a period of five years from the closing date. The
proceeds raised will be used for the 12 months following closing to
fund $2.7 million on program expenditures, up to $4.0 million on
general and administrative expenses, and $0.8 million on extraordinary
expenses incurred in reducing annual general and administrative
expenses.

Program expenditures will be used to complete a re-logging and
re-assaying program of between 10,000 and 13,000 meters of historical
drill core at Bornite beginning in July 2014. Targeted historical
holes are located within the extensions of the Upper and Lower Reef
mineralization captured in the Bornite Open Pit Resource released on
March 18, 2014 and the up dip portion of South Reef zone. This effort
is a continuation of last year's program of re-sampling and re-assaying
which targeted 33 drill holes comprising 11,067 meters of core
originally drilled between 1957 and 1975 and only selectively sampled
by subsidiaries of Kennecott the former owner of the property. Last
year's re-assay program resulted in a significant increase in the
inferred resource at Bornite and we expect that the 2014 re-logging and
re-assaying program this year could add more copper inventory at
Bornite and reduce the strip ratio for a potential open pit mining
operation.

During the first half of 2014, we focused efforts on supporting the
Alaska Industrial Development Export Authority ("AIDEA") in initiating
the permitting process on the Ambler Mining District Industrial Access
Road ("AMDIAR") which is expected to provide access to Upper Kobuk
Mineral Projects. In late April 2014, AIDEA's board of directors
approved a resolution authorizing AIDEA to proceed with an application
for the Ambler road to the federal agencies that have jurisdiction over
the AMDIAR project and to engage a firm to prepare the environmental
impact statement for the project under the direction of the federal
agencies. Funding for this initiative was provided in the 2013-2014
Alaska State budget. On May 28, 2014, the Governor of Alaska signed
Alaska's 2015 state budget bills into law. AIDEA received approval for
an additional $8.5 million budget from the State of Alaska to fund
activities on the AMDIAR in the 2015 fiscal budget.

"Our strategy in the upcoming months is to build upon the success of
last year's program," said Mr. Rick Van Nieuwenhuyse, NovaCopper's
President and Chief Executive Officer. "An effective program of
re-logging and re-assaying at Bornite coupled with our focused effort
of working closely with AIDEA on initiating the permitting process for
the AMDIAR should allow NovaCopper to continue building shareholder
value at a relatively low cost."

Second Quarter Financial Results

The following unaudited selected quarterly information is prepared in
accordance with U.S. GAAP.

in thousands of dollars,except for per share amounts

Selected financial results

Three
months
ended
May 31,
2014
$

Three months endedMay 31, 2013$

Six
months
ended
May 31,
2014
$

Six months endedMay 31, 2013$

Amortization

208

254

466

504

General and administrative

457

616

894

1,164

Mineral properties expense

489

2,231

1,069

3,033

Professional fees

176

211

826

510

Salaries

600

602

1,149

1,150

Salaries - stock-based compensation

135

2,000

251

6,113

Loss and comprehensive loss for the period

2,093

5,947

4,707

12,573

Basic and diluted loss per common share

$0.04

$0.11

$0.09

$0.26

For the three month period ended May 31, 2014, we reported a net loss of
$2.1 million (or $0.04 basic and diluted loss per common share), a
reduction from the net loss of $5.9 million for the corresponding
period in 2013 (or $0.11 basic and diluted loss per common share). The
significant reduction in expenses is related to the timing of field
program start-up in 2014. In 2013, we incurred $2.2 million in mineral
property expenses as our field season began in early May. In 2014, our
field program is expected to begin in July resulting in minimal charges
during the second quarter relating to field activities. The other
significant reduction in expenses is from a charge of $2.0 million in
stock-based compensation in 2013 compared to $0.1 million in 2014. No
stock-based compensation grants have occurred in 2014 resulting in
minimal expense from previously granted options and units being
recorded in the current reporting period.

Other differences in the three months ended May 31, 2014 compared to the
three months ended May 31, 2013 resulted from a reduction in general
and administrative expenses and professional fees. General and
administrative costs were reduced by approximately 26% due to cost
reduction efforts including a reduction in office space costs.
Professional fees also decreased by approximately 17% in the comparable
three month periods due to cost reduction efforts.

For the six months ended May 31, 2014, NovaCopper reported a net loss of
$4.7 million (or $0.09 basic and diluted loss per common share)
compared to a net loss of $12.6 million for the corresponding period in
2013 (or $0.26 basic and diluted loss per common share). This variance
was primarily due to a non-cash stock-based compensation charge of $6.1
million for the six months ended May 31, 2013 compared to $0.3 million
in the corresponding period in 2014. Total stock-based compensation
expense recognized for the six months ended May 31, 2013 was $6.1
million which included $3.3 million for options granted under the
NovaCopper stock option plan, $0.05 million for NovaGold arrangement
options from the spin-out, and $2.7 million for restricted share units
and deferred share units granted to employees and directors with no
similar grant in the first quarter of this year. In November 2013, all
employees and directors voluntarily returned options outstanding having
an exercise price of CAD$3.11 totaling 5,710,000 stock options in order
to create a more sustainable long-term retention strategy. As a result,
the expense relating to these options was accelerated and recorded in
the year ended November 30, 2013. Additionally as noted above, no stock
based compensation grants have occurred in 2014 resulting in minimal
expense from previously granted options and units being expensed in the
current period.

Liquidity and Capital Resources

At May 31, 2014, we had $2.1 million in cash and cash equivalents. At
November 30, 2013, we had consolidated cash of $6.5 million and working
capital of $4.7 million. We expended $4.4 million on operating
activities during the six month period ended May 31, 2014, compared
with expenditures of $6.4 million for operating activities for the same
period in 2013. The majority of cash spent on operating activities
during both periods was expended on mineral property expenses, general
and administrative, salaries, and professional fees. As the exploration
field season in the Ambler mining district in 2013 began in May, a
significant portion of the mineral property expenses expended during
the 2013 fiscal year were incurred during this period. As our project
program for 2014 is anticipated to begin in July, cash expended on
mineral property expenses was significantly reduced compared to the
prior year.

Substantial doubt exists as to the Company's ability to continue as a
going concern as the continued operations and exploration activities of
the Company are dependent on its ability to obtain additional financing
within the next twelve months. Subsequent to May 31, 2014, the Company
raised $7.5 million through a private placement which is restricted to
fund general and administrative expenses and program expenditures
during the next twelve months. The Company will need to raise
additional funds to support further exploration of its projects and
administration expenses. Future financings are anticipated through
equity raises, debt financing, convertible debt, or other means. There
is no assurance that the Company will be successful in obtaining
additional financing, that sufficient funds will be available to the
Company, or be available on favourable terms in the future. Factors
that could affect the availability of financing include fluctuations in
the Company's share price, the state of international debt and equity
markets, investor perceptions and expectations, global financial and
metals markets, and progress on the Company's exploration properties.

About NovaCopper

NovaCopper Inc. is a base metals exploration company focused on
exploring and developing the Ambler mining district located in
northwestern Alaska. It is one of the richest and most-prospective
known copper-dominant districts located in one of the safest
geopolitical jurisdictions in the world. It hosts world-class
polymetallic VMS deposits that contain copper, zinc, lead, gold and
silver, and carbonate replacement deposits which have been found to
host high-grade copper mineralization. Exploration efforts have been
focused on two deposits in the Ambler district - the Arctic VMS deposit
and the Bornite carbonate replacement deposit. Both deposits are
located within NovaCopper's land package that spans approximately
143,000 hectares. NovaCopper has an agreement with NANA Regional
Corporation, Inc., an Alaskan Native Corporation that provides a
framework for the exploration and potential development of the Ambler
mining district in cooperation with local communities. Our vision is to
develop the Ambler mining district into a premier North American copper
producer.

More information on the Company, its properties and its management team
is available on the Company's website at www.novacopper.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking information" and
"forward-looking statements" (collectively "forward-looking
statements") within the meaning of applicable Canadian and United
States securities legislation including the United States Private
Securities Litigation Reform Act of 1995. All statements, other than
statements of historical fact, included herein, without limitation,
statements relating to the future operating or financial performance of
NovaCopper, are forward-looking statements. Forward-looking statements
are frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential",
"possible", and similar expressions, or statements that events,
conditions, or results "will", "may", "could", or "should" occur or be
achieved. These forward-looking statements may include statements
regarding perceived merit of properties; exploration results and
budgets; mineral reserves and resource estimates; work programs;
capital expenditures; timelines; strategic plans; market prices for
precious and base metals; or other statements that are not statements
of fact. Forward-looking statements involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from NovaCopper's
expectations include the uncertainties involving the need for
additional financing to explore and develop properties and availability
of financing in the debt and capital markets; uncertainties involved in
the interpretation of drilling results and geological tests and the
estimation of reserves and resources; the need for cooperation of
government agencies and native groups in the development and operation
of properties; the need to obtain permits and governmental approvals;
risks of construction and mining projects such as accidents, equipment
breakdowns, bad weather, non-compliance with environmental and permit
requirements, unanticipated variation in geological structures, metal
grades or recovery rates; unexpected cost increases, which could
include significant increases in estimated capital and operating costs;
fluctuations in metal prices and currency exchange rates; and other
risks and uncertainties disclosed in NovaCopper's Annual Report on Form
10-K for the year ended November 30, 2013 filed with Canadian
securities regulatory authorities and with the United States Securities
and Exchange Commission and in other NovaCopper reports and documents
filed with applicable securities regulatory authorities from time to
time. NovaCopper's forward-looking statements reflect the beliefs,
opinions and projections on the date the statements are made.
NovaCopper assumes no obligation to update the forward-looking
statements or beliefs, opinions, projections, or other factors, should
they change, except as required by law.